 Green creates value: Evidence from ChinaKangqi Jiang, Zhongfei Chen and Fanglin Chen Journal of Asian Economics, 2022, vol. 78, issue C Abstract: This study explores whether and how the issuance of green bonds affects firm value in China from January 2015 to September 2020. Based on a multiperiod difference-in-differences model, we observe that firm value increases with the issuance of green bonds, but this positive effect is unsustainable and weakens gradually. The heterogeneity analysis suggests that the expected positive effect of green bond issuance on firm value is highly evident in non-state-owned firms, small firms, firms in green finance pilot zones, and firms in the eastern region. Moreover, we explore the mechanism in terms of financing condition, government support, and green investment and find that the financing condition, tax burden, and government subsidy of firms improve following the issuance of green bonds. However, green investments erode firm profits, which may lead to the unsustainability of the driving effect of green bond issuance on firm value. Further analysis reveals that when the volume of the green bonds issued by firms increases by one standard deviation, firm value increases by 0.032 units on average. Keywords: Green bond; Firm value; Financing condition; Government support; Green investment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:78:y:2022:i:c:s1049007821001536 DOI: 10.1016/j.asieco.2021.101425 Access Statistics for this article Journal of Asian Economics is currently edited by C. Wiemer More articles in Journal of Asian Economics from Elsevier |
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